Systematic Withdrawal Plan - SWP

DEFINITION of 'Systematic Withdrawal Plan - SWP'

A service offered by a mutual fund that provides a specific payout amount to the shareholder at predetermined intervals, generally monthly, quarterly, semiannually or annually.

BREAKING DOWN 'Systematic Withdrawal Plan - SWP'

Three main reasons for using SWPs are to meet living requirements (usually when retired), for tax planning purposes, or to comply with mandatory retirement plan withdrawal rules after reaching age 70.5.

RELATED TERMS
  1. Semiannual

    A semiannual event happens twice a year, typically every six ...
  2. Payout

    The expected financial return from an investment over a given ...
  3. Interval Fund (Scheme)

    A fund that combines the features of open-ended and closed-ended ...
  4. Adjustment Interval

    The amount of time between interest rate changes to an adjustable ...
  5. Withdrawal Plan

    1) A payment structure arranged with a mutual fund in which the ...
  6. Withdrawal

    Removing funds from an account, plan, pension or trust. In some ...
Related Articles
  1. Entrepreneurship

    Will A Systematic Withdrawal Plan Work For You?

    Check out the particulars of an SWP to see if it's the right choice for your retirement.
  2. Financial Advisors

    How Much Should Retirees Withdraw From Accounts?

    Figuring out how much to withdraw from a retirement account every year can be a tough task. Here's help for both the saver and the advisor.
  3. Term

    What's a Qualified Retirement Plan?

    Employers establish qualified retirement plans to help their employees save money.
  4. Professionals

    Distribution/Withdrawl Rules

    Series 6, Distribution/Withdrawl Rules. This section discusses the minimum ditribution rules and withdrawals from Qualified Retirement Plans.
  5. Taxes

    Retirement Planning For 30-Somethings: Avoiding Withdrawals

    Making withdrawals from your retirement savings will negatively impact your retirement nest egg in several ways. The following are a few: Early-Distribution PenaltyIn order to defer retirement ...
  6. Financial Advisors

    Tapping Your Retirement Accounts: How to Start

    Deciding which retirement account to tap first can be confusing as it may impact how long your savings last. Here's some help.
  7. Financial Advisors

    Top Tips for Maximizing Retirement Withdrawals

    There can be significant tax advantages to taking withdrawals from one retirement account over another. Here's how to help clients plan.
  8. Professionals

    Rules and Reporting Requirements for Mutual Funds

    FINRA Series 6 Exam Study Guide - Rules and Reporting Requirements for Mutual Funds. In this section Rules and Reporting Requirements for Investment (Mutual Fund) Companies. Rule 12b-1 and shareholder ...
  9. Mutual Funds & ETFs

    Trading Mutual Funds for a Living: Is It Possible?

    Find out why trading mutual funds for a living isn't your best bet, including how funds discourage short-term trading and which options may better serve you.
  10. Retirement

    5 Crucial Tips For Your Retirement Income Planning

    Here are strategies to ensure that your assets have staying power, and that your wealth-making years provide enough funds for your income-taking ones.
RELATED FAQS
  1. Are mutual funds considered retirement accounts?

    Learn why mutual funds are not classified as retirement accounts but can nonetheless offer a highly effective way to save ... Read Answer >>
  2. When can benefits be received from a provident fund?

    Find out when participants in provident funds can begin receiving benefits, including how funds can be used to finance important ... Read Answer >>
  3. What does a sample plan using the 4% retirement rule look like?

    Discover how the 4% retirement rule can work as part of a plan to achieve increasing retirement income if investments perform ... Read Answer >>
  4. Are 457 plan withdrawals taxable?

    Learn how withdrawals from 457 deferred compensation plans are taxable but are not subject to the same rules and restrictions ... Read Answer >>
  5. How are benefits from a provident fund taxed?

    Find out how benefits are taxed under the various provident funds around the world, including the Indian Provident Fund and ... Read Answer >>
  6. Can you make tax-free withdrawals from your 401(k)?

    Find out whether you can take withdrawals from your 401(k) tax-free, including how withdrawals from Roth and traditional ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center